JPMorgan Strategists Have Predicted Demand Of $600 Billion For Bitcoin
Strategists at the leading American multinational investment banking and financial services firm JPMorgan Chase & Co have claimed in a recent investor note issued on the 11th of December that the demand for cryptocurrencies is rising overwhelmingly and the recent investment made by the 169-year-old Massachusetts Mutual Life Insurance Company into Bitcoin is the proof of it. They think that more institutions might throw their investments into the world’s largest digital currency by market cap as Bitcoin seems to have gained the attention of major institutional investors.
Potential Demand For Bitcoin May Rise Over the Coming Years
JP Morgan’s experts including Nikolaos Panigirtzoglou have called the $100 million purchase of MassMutual a significant milestone for the leading digital currency Bitcoin. This investment made by the insurance company has surprised the cryptocurrency industry. The experts of JP Morgan believe that following this investment, the potential demand for the top-ranked digital currency is expected to grow exponentially over the coming few years. As they said in the investor note:
“MassMutual’s Bitcoin purchases represent another milestone in the Bitcoin adoption by institutional investors. One can see the potential demand that could arise over the coming years as other insurance companies and pension funds follow MassMutual’s example.”
They think that this investment has boosted the adoption of Bitcoin which has started spreading now. Soon, there is likely a chance that various other financial institutions, wealthy investors, and family offices may start buying Bitcoin.
The bank’s strategists also gave a prediction regarding this as well. They said that the flagship cryptocurrency is primed to see a potential additional demand of around $600 billion in the future. According to their estimate, if 1 percent of assets is allocated by insurance companies and major pension funds from the United Kingdom, the United States, and the euro area then this allocation would result in additional $0.6 trillion demand for Bitcoin in the years to come.
This is not the first time that these strategists of JP Morgan have talked about the growing adoption of Bitcoin. Just a few days ago, they said that Bitcoin’s adoption by institutional investors has increased over recent time and this is just beginning. Moreover, they stated that due to Bitcoin, the so-called safe-haven asset gold will suffer for years.
Bitcoin’s Price Performance
Meanwhile, Bitcoin is trying to get close to its heavy resistance of $20,000. After recording its all-time high value at around $19,900, the price value of the coin has moved down to trade at around $19,100.
During the past few weeks, Bitcoin had to face some price crashes. One of these price crashes took the price value of the coin down below $18,000. However, it showed a quick recovery after every price crash. At the press time, the price value of BTC is holding at around its support level of $19k.
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